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During the year ended 30 June 2020 the Badani Mining Company acquired two areas - Wyong and Mulgrave and has spent the past year undertaking
During the year ended 30 June 2020 the Badani Mining Company acquired two areas - Wyong and Mulgrave and has spent the past year undertaking exploration and evaluation activities in these three areas of interest. Details of the costs incurred are as follows. Site Acquisition costs $m Exploration costs $m Evaluation costs $m Wyong 9.7 12.8 0 Mulgrave 15.1 9.9 9.6 Preliminary drilling has shown promising results for the Wyong site. However, due to the recent discovery of Denisovan skull fragments in the Wyong area, Commonwealth legislation has been enacted regarding archaeological sites, which imposes an unconditional ban on any development in areas declared to be of archaeological significance. On 18 March 2020, Lithium is discovered at the Mulgrave site. Company geologists estimate that 200,000 tonnes of Lithium are located at the site, which exceeds the company's minimum benchmark of 120,000 tonnes of Lithium to proceed with the development of an area of interest. Required Determine the amount of exploration and evaluation assets recognised by Badani Mining Company for the year ended 30 June 2020 in accordance with the requirements of AASB 6. (6 marks)
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